Ambipar Participacoes e Empreendimentos (AMBP3) Q4 2024 earnings summary

Executive summary

• Q4 adjusted net revenue was R$1,610.6 million, up 19.7% year-over-year and 8.6% sequentially; 2024 adjusted net revenue was R$5.7 billion, up 18.5% and above initial guidance.

• 2024 net revenue was R$6,413.7 million, up 31.6% year-over-year.

• Adjusted EBITDA reached R$468.8 million in Q4, up 17.1%; 2024 adjusted EBITDA was R$1,713.0 million, up 19.1%.

• Recurring net income was R$70.0 million in Q4 and R$93.5 million for 2024; Q4 marked a turnaround from a 3Q24 loss.

• 2024 operating cash flow reached a record R$1,167.7 million, up 62.5%; cash flow after CAPEX was R$573.1 million.

Financial highlights

• Adjusted EBITDA margin was 29.1% in Q4 and 29.7% for 2024, up 0.2 percentage points year-over-year.

• CAPEX totaled R$594.6 million, or 10.3% of adjusted net revenue, the lowest annual level reported.

• Year-end net debt was R$4,638.8 million; adjusted net debt/EBITDA was 2.47x, stable versus 3Q24.

• 2024 ROIC was 11.8%, up 1.3 percentage points year-over-year.

• Q4 gross margin was 31.9%, up 5.3 percentage points sequentially.

Outlook and guidance

• Priorities include organic growth, cash generation, debt reduction, operational efficiency, integration, and synergy capture.

• No 2025 CAPEX guidance was provided; focus is on operational cash flow to meet obligations.

• International expansion remains focused on North America and Europe; North American Response margin improvement is targeted for 2025 and 2026.

• S&P and Fitch revised their outlooks to Positive, citing expected cash-flow improvement, lower investment, and deleveraging.

• Plastics recycling partnerships and reforestation projects support circular-economy and decarbonization ambitions.